Question

What is the most interesting idea we learn from microeconomics and why do you think it is interesting ?

Answer 1

Microeconomics is a branch of economics that studies the actions of individuals and companies and how decisions are taken on the basis of the distribution of limited resources. Simply put, it's a study of how we make choices, because we know we don't have all the resources and time in the world to buy and do anything. Microeconomics explores how these choices and actions influence the supply and demand of goods and services that decide the prices we pay. Such prices, in effect, decide the quantity of goods supplied by companies and the quantity of goods needed by consumers.

Elasticity- Elasticity is used to help assess the increase in market demand (how much you want) as a result of a rise in the price of the products. If a product or service is elastic, this means that the demand for a good or service is influenced by a price change, while anything inelastic is price-sensitive. An apple can be an example of an elastic product. When the price of apples increases, you 're more likely to think about going to another fruit that's cheaper. The market for fruit is going to go down.

Opportunity Cost- Opportunity is essentially a look into how individuals and companies weigh various choices. The cost of an opportunity is the expense of the best alternative. This concept reflects the idea that the cost of something is not just the monetary cost, but also the worth of what you didn't get.

Supply and Demand- Supply and demand are the most important methods in economic analysis. Most problems and economic theory require supply and demand in one way or another.